The Estate Tax and . . . Baseball?

As we noted earlier , it’s not often that there is a confluence of professional sports and matters of taxation. George Steinbrenner, who owned the New York Yankees for some four decades, died at the right time . . . from a tax perspective. By passing away in 2010, his family will probably not have to pay federal estate tax. Had Steinbrenner died last year, 45% of his $1.2 billion fortune would have gone to the IRS in estate taxes, rather than to his family. Had he died next year, 55% would have gone to the IRS rather than to his family. By dying in 2010, his family avoids the estate tax and will probably get to keep all $1.2 billion, including the $500 million that would have gone to estate taxes. Why “probably”? Because Congress might still vote to impose an estate tax for 2010, retroactive to January 1. But there isn’t much time left for Congress to act, and such retroactive legislation will certainly be challenged in the courts.

Suppose you have a large estate and don’t want to die in 2010, is there something you can you do to preserve your wealth for your loved ones, rather than the IRS? Yes, you can contact us to discuss tax planning strategies to minimize or possibly eliminate the estate tax and preserve your wealth for your family or worthy charities. George Steinbrenner conveniently died in 2010 and saved his family a bundle. You can take the proper active steps to make sure your wealth goes where you want.